HomeMy WebLinkAboutNC Comprehensive Report (Finance) (35)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
'1) Summary of Significant Accounting Policies, (Continued)
The City also reports the following fund types:
Internal Service Funds
These funds are used to account for interdepartmental operations where it is the
stated intent that costs of providing services to the departments of the City on a
continuing basis be financed or recovered primarily by charges to the user
departments.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets and a
Statement of Changes in Fiduciary Net Assets. The City's fiduciary funds
represent private -purpose trust funds and agency funds. The private -purpose trust
funds are used to account for resources legally held in trust for the Successor
Agency to the Community Development Commission of the City of National
City. The private purpose trust funds are accounted for using the accrual basis of
accounting. The Agency funds are custodial in nature (assets equal liabilities) and
do not involve measurement of results of operations. The Agency funds are
accounted for using an accrual basis of accounting.
C Use of Restricted/Unrestricted Net Assets
When an expense is incurred for purposes for which both restricted and
unrestricted net assets are available, the City's policy is to apply restricted net
assets first.
D. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and
cash equivalents are considered to be cash on hand, demand deposits, and short-
term investments with original maturity of three months or less from the date of
acquisition. Cash and cash equivalents are combined with investments and
displayed as Cash and Investments.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting
for Certain Investments and for External Investment Pools, highly liquid market
investments with maturities of one year or less at time of purchase are stated at
amortized cost. All other investments are stated at fair value. Market value is
used as fair value for those securities for which market quotations are readily
available.
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